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The proposed guidelines, contained in an exposure draft available on www.treasury.gov.au, would seek to avoid a situation where investors, through no fault of their own, may be unwittingly allowed to continue trading in a market that is not fully informed of all material information.
Under Australia's continuous disclosure system, a listed company must inform the market immediately it becomes aware of any price-sensitive information that could affect the value of its securities. This system underpins the overall disclosure regime for Australian listed companies and forms the cornerstone of ASX's reputation as a market of the highest integrity.
ASX managing director and CEO Richard Humphry strongly endorsed the draft guidelines, which he said were a recognition of the crucial role that government agencies and their decisions can play in determining market valuations.
"There have been a few isolated, but nonetheless disturbing, examples in recent times where investors were left trading in a market that had been compromised by the release of information of which they may not have been aware. By following these guidelines, it is far less likely that such instances would occur in the future," he said.
"What is particularly significant is the Government's recognition that the primary responsibility for market disclosure remains with the listed company. This system - originally unique to Australia, but now admired worldwide - has worked extremely well over the past decade and this fine-tuning can only strengthen it."
